You are on page 1of 35

Executive Summary

The study is done to find the marketing activities of Vijaya bank. The classification of its
product profile and its competitiveness with comparison to other bank was analyzed for.
The balance sheet of the bank was analyzed and compared with the past year balance
sheets and ratio analysis was done to find the profitability, liquidity and leverage ratios.
The project and the survey were guided throughout by experts in specific areas.

The analyzer had prepared a questionnaire at the beginning to start a survey of the
marketing activity of the bank. A thorough industrial analysis comprising with the
company profile is done. The project was also on the basis of some of the valuable inputs
from the customers of the particular bank to find out the positioning of the banks service.
The survey was done on some of the randomly selected branches.

The major findings were that the bank is lagging behind in video advertisements and it
has a tough competition from the corporation and syndicate bank. The bank is much more
customer service oriented and the workforce present is much impressive. The product
profile of the bank is also impressive where it is covering all the sections and places in
the society. The bank are also high on practicing corporate social responsibility. It was
also seen that the bank is very much concentrating in the print-advertisement section and
also customer call service.

It is also the second bank in India to start with the mobile banking system, which has a
good customer response. The NPA ratio was fair in all the branches as consulted in the
research and its increasing number of branches across India was showing the progress of
the bank.

Research Design

It is the conceptual structure within which the research is conducted. It constitutes the
blue print for the collection, measurement and analysis of data. The design includes an

outline of what the researcher will do from writing the hypothesis and its operational
implication to the final analysis of data. It constitutes the steps taken beginning with the
collection of data, classifying, analyzing and interpretation, processing and finally putting
in textual form. This is one important chapter of project and can be considered as skeletal
of project.

➢ Objective of the study: To understand the analytical framework of project

marketing and to analyze mechanism at bank.

➢ To familiarize with the interrelationship among various aspects of banking

in Vijaya bank.

➢ To understand the importance of promotional and market analysis.

➢ To study the evaluations and understand the working in bank.

Scope of your study: The scope of the study is limited to marketing activity of Vijaya
Bank (branches). It will give an in depth theoretical and practical knowledge about the
marketing aspects. This study also covers ratio analysis, of the balance sheet of the bank
and also analyses the marketing activity of the bank.

Methodology and limitation: Methodology of Data Collection

As regarded to methodology, normally both quantitative and qualitative

approaches are adopted. In order to collect the data, this study brings a live analysis based
on the live data collected from secondary type of data. The techniques of ratio analysis
have been made use for the analysis of the financial statement of the bank.

➢ Interacting with executives, functional in charge of various areas and

departments discussing informally.
➢ Referring to the secondary that is, various project reports prepared by the
bank and desk guides available with the bank.
➢ Visiting official website of the bank and other related websites.
➢ Questionnaire was prepared for survey.
➢ Referring to news papers and various business magazines.

Limitation of the study

➢ The study is limited to then marketing activity of Vijaya Bank. The

investigator could not cover all the branches, which are providing similar
➢ The data recorded was presumed to be authentic
➢ This study curtails comparison, as it is within the purview of only one

Industry Profile


Banking in India has a long and elaborate history of more than 200 years. The beginning
of this industry can be traced back to 1786, when the country’s first bank, Bank of
Bengal, was established. But the industry changed rapidly and drastically, after the

nationalization of banks in 1969. As a result, the public sector banks began experiencing
numerous positive changes and enormous growth. Then came the much-talked-about
liberalization and economic reforms that allowed banks to explore new business
opportunities and not just remain constrained to generating revenues from mere
borrowing and lending. This provided the Indian banking scenario a remarkable facelift
that only continues to get better with time. However, even today, despite the foray of
foreign banks in the country, nationalized banks continue to be biggest lenders in the
country. This is primarily due to the size of the banks and the penetration of the networks.

Nature of the Industry

Banks safeguard money and valuables and provide loans, credit, and payment services,
such as checking accounts, money orders, and cashier’s checks. Banks also may offer
investment and insurance products, which they were once prohibited from selling. As a
variety of models for cooperation and integration among finance industries have
emerged, some of the traditional distinctions between banks, insurance companies, and
securities firms have diminished. In spite of these changes, banks continue to maintain
and perform their primary role—accepting deposits and lending funds from these

There are several types of banks, which differ in the number of services they provide and
the clientele they serve. Although some of the differences between these types of banks
have lessened as they begin to expand the range of products and services they offer, there
are still key distinguishing traits. Commercial banks, which dominate this industry, offer
a full range of services for individuals, businesses, and governments. These banks come
in a wide range of sizes, from large global banks to regional and community banks.
Global banks are involved in international lending and foreign currency trading, in
addition to the more typical banking services. Regional banks have numerous branches
and automated teller machine (ATM) locations throughout a multi-state area that provide
banking services to individuals. Banks have become more oriented toward marketing and
sales. As a result, employees need to know about all types of products and services
offered by banks. Community banks are based locally and offer more personal attention,
which many individuals and small businesses prefer. In recent years, online banks—
which provide all services entirely over the Internet—have entered the market, with some

success. However, many traditional banks have also expanded to offer online banking,
and some formerly Internet-only banks are opting to open branches.

Savings banks and savings and loan associations, sometimes called thrift institutions, are
the second largest group of depository institutions. They were first established as
community-based institutions to finance mortgages for people to buy homes and still
cater mostly to the savings and lending needs of individuals.

Credit unions are another kind of depository institution. Most credit unions are formed by
people with a common bond, such as those who work for the same company or belong to
the same labor union or church. Members pool their savings and, when they need money,
they may borrow from the credit union, often at a lower interest rate than that demanded
by other financial institutions.

Federal Reserve banks are Government agencies that perform many financial services for
the Government. Their chief responsibilities are to regulate the banking industry and to
help implement our Nation’s monetary policy so our economy can run more efficiently
by controlling the Nation’s money supply—the total quantity of money in the country,
including cash and bank deposits. For example, during slower periods of economic
activity, the Federal Reserve may purchase government securities from commercial
banks, giving them more money to lend, thus expanding the economy. Federal Reserve
banks also perform a variety of services for other banks. For example, they may make
emergency loans to banks that are short of cash, and clear checks that are drawn and paid
out by different banks.

Interest on loans is the principal source of revenue for most banks, making their various
lending departments critical to their success. The commercial lending department loans
money to companies to start or expand a business or to purchase inventory and capital
equipment. The consumer lending department handles student loans, credit cards, and
loans for home improvements, debt consolidation, and automobile purchases. Finally, the
mortgage lending department loans money to individuals and businesses to purchase real

The money to lend comes primarily from deposits in checking and savings accounts,
certificates of deposit, money market accounts, and other deposit accounts that
consumers and businesses set up with the bank. These deposits often earn interest for the

owner, and accounts that offer checking provide an easy method for making payments
safely without using cash. Deposits in many banks are insured by the Federal Deposit
Insurance Corporation, which ensures that depositors will get their money back, up to a
stated limit, if a bank should fail.

Technology is having a major impact on the banking industry. For example, many routine
bank services that once required a teller, such as making a withdrawal or deposit, are now
available through ATMs that allow people to access their accounts 24 hours a day. Also,
direct deposit allows companies and governments to electronically transfer payments into
various accounts. Further, debit cards, which may also used as ATM cards,
instantaneously deduct money from an account when the card is swiped across a machine
at a store’s cash register. Electronic banking by phone or computer allows customers to
pay bills and transfer money from one account to another. Through these channels, bank
customers can also access information such as account balances and statement history.
Some banks have begun offering online account aggregation, which makes available in
one place detailed and up-to date information on a customer’s accounts held at various

Advancements in technology have also led to improvements in the ways in which banks
process information. Use of check imaging, which allows banks to store photographed
checks on the computer, is one such example that has been implemented by some banks.
Other types of technology have greatly impacted the lending side of banking. For
example, the availability and growing use of credit scoring software allows loans to be
approved in minutes, rather than days, making lending departments more efficient.

Other fundamental changes are occurring in the industry as banks diversify their services
to become more competitive. Many banks now offer their customers financial planning
and asset management services, as well as brokerage and insurance services, often
through a subsidiary or third party. Others are beginning to provide investment banking
services that help companies and governments raise money through the issuance of stocks
and bonds, also usually through a subsidiary. As banks respond to deregulation and as
competition in this sector grows, the nature of the banking industry will continue to
undergo significant change.


The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The industry is highly fragmented with 30 banking units
contributing to almost 50% of deposits and 60% of advances. The Reserve Bank of India
is the foremost monitoring body in the Indian Financial sector. It is a centralized body
that monitors discrepancies and shortcomings in the system.

Industry estimates indicate that out of 274 commercial banks operating in the country,
223 banks are in the public sector and 51 are in the private sector. These private sector
banks include 24 foreign banks that have begun their operations here. The specialized
banking institutions that include cooperatives, rural banks, etc. form a part of the
nationalized banks category.

Origin of the word

The name bank derives from the Italian word banco "desk/bench", used during the
Renaissance by Florentine bankers, who used to make their transactions above a desk
covered by a green tablecloth. However, traces of banking activity can found even in
ancient times. In fact, the word traces its origins back to the Ancient Roman Empire,
where moneylenders would set up their stalls in the middle of enclosed courtyards called
macella on a long bench called a bancu, from which the words banco and bank are
derived. As a moneychanger, the merchant at the bancu did not so much invest money as
merely convert the foreign currency into the only legal tender in Rome- that of the
Imperial Mint.


The Banking sector is considered the most lucrative option in today’s job market. In the
industry, a position in Treasury or Forex is considered right on top and this is followed by
careers in Private Banking, Investment Banking and Retail Banking. One could work in a

variety of areas in banking industry including Recurring Deposit account, banking
officer, probationary officer, loan officer, assessor, personal loan officer, home loan
officer, home loan agent, loan manager, mortgage loan underwriter, loan processing
officer, accountant, product marketing and sales executive, and customer service
executive among others.

In the Financial Services, some of the important jobs include that of a stockbroker who is
essentially a person who buys and sells securities on behalf of individuals and institutions
for some commission. While some brokers like to practice with individual clients others
work for institutions. Brokers who work for institutional investors are often called
securities traders. Many prefer to work as dealers, advisors and securities analysts.
Security analysts are those who advise companies on floatation’s of shares as they are
expected to have sound knowledge of capital markets.

Investment analysts are the backbone of the financial services sector. They study the
financial reports of companies, assess various statistical information, profitability
projections, compare financial results, survey the industry as a whole and on the basis of
the available information, and finally conclude to a decision. Equity Analysts do jobs
similar to investment analysts and research the equity markets and make predictions.

Indian Banking & Insurance Industry
of economic liberalization measures many private and foreign banking companies
ov allowed to operate in the country. Favorable economic climate and a variety of
er factors such as demand for wide range of financial products from various sections
of 20
the society led to mutually beneficial growth to the banking sector and economic
0 process. This was coincided by technology development in the banking
ye Today most of the Indian cities have networked banking facility as well as
ars banking facility. A customer is empowered to operate his account from any part
of .the country. UTI Bank, ICICI, HDFC Bank and Bank of Punjab are the main winners
of Fr
the race.

of Banking & Insurance Sectors in India
Diversifying into investment banking, insurance, credit cards, depository services,
mortgage financing, securitization has increased revenues. As large number of players
in various fields enters the market, competition would be intensified by mutual funds,
Non Banking Finance Corporations (NBFCs), post offices, etc. from both domestic and
foreign players. All this would lead to increased sophistication and technology in the
sector. Corporate governance would come into the picture and other financial
institutions would have to reach global standards. Also the limit for FDI in private
banks is increased to 74% and the limit for FII is 49%. There are many challenges
ahead for the banking sector such as technology, consumer satisfaction, corporate
governance, risk management, etc. and they are redefining their priorities, which are
now focused on cost reduction, product differentiation and customer centric services.
Some of the major players in this sector are HDFC, ICICI, HSBC, State Bank of India,
Punjab National Bank, IngVysya, ABNAmro Bank, Centurion Bank, City Bank, etc.
msinsurance sector has opened up for private insurance companies with the enactment
of of
IRDA Act, 1999. A large number of companies are competing under both life and
ca Insurance. The FDI cap/equity in this sector is 26% and the proposals have to
cleared by Insurance Regulatory and Development Authority (IRDA) established to
al the interest of holder of Insurance policy and act as a regulator and facilitator in
theanindustry. Some of the major players in this sector are LIC, Max New York Life
d Bajaj Allianz, ICICI Prudential, HDFC Standard Life, Metlife Insurance,
the Sun Life Insurance, etc. Various types of policies and instruments are coming up
in nu
the market to attract more customers. Most of the population of India is not insured,
mb there is a lot of scope in this sector and a number of companies are planning to
er the sector. Every futuristic individual would want himself to get insured.
cus markets have a long history of over 100 years in India. Bombay Stock Exchange
to into existence more than a hundred years ago to remove direct government

Major Players in the Industry

Allahabad Bank

Andhra Bank

Axis Bank Ltd.

Bank of Baroda

Bank of India

Canara Bank

Central Bank of India

HDFC Bank Ltd.

ICICI Bank Ltd.

Indian Bank

IndusInd Bank Ltd.

Industrial Development Bank of India Ltd.

ING Vysya Bank Ltd

Jammu & Kashmir Bank Ltd.

Karnataka Bank Ltd.

Karur Vysya Bank Ltd.

Kotak Mahindra Group

Lakshmi Vilas Bank Ltd.

Lord Krishna Bank Ltd

North Kanara G.S.B. Co-operative Bank

Oriental Bank of Commerce

PricewaterhouseCoopers Pvt. Ltd

Punjab & Sind Bank

Punjab National Bank

South Indian Bank Ltd.

State Bank of Bikaner and Jaipur

State Bank of Hyderabad

State Bank of India

State Bank of Indore Ltd.

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

Wallfort Financial Services Ltd.

Wells Fargo

YES Bank Ltd.

Performance of Industry

� 84 percent of the survey respondents described the performance of the banking

Industry as “Very Good” in the fiscal 2004-05.
� newly granted autonomy would certainly make the PSBs more competitive and
Profitable, said 88 per cent respondents, though some more changes considered
Desirable (refer survey)
� 48 percent of overall respondents and 67 percent of private bank respondents
Expressed the need to relax the prescribed limit of single ownership and cross holding
cap in the Ownership and Governance guidelines for Private sector Banks.
� Although 72 percent of public & private sector bank respondents expressed their
satisfaction with the recently devised road map for the foreign banks, majority of
foreign Bank respondents (75 percent) expressed complete dissatisfaction with this
� 75 percent of the foreign bank respondents expressed that time frame prescribed to
expand through Merger & Acquisitions should have been less and equal number
voiced that the guidelines are not in line with international norms.
� Consolidation in the banking industry followed by Technological up gradation was
considered as key factors currently required to enhance the international
Competitiveness of the Indian banks.
� Free trade agreements (FTA) considered a positive step in the area of banking by
almost all respondents. The available market size and the level of access provided to
Survey on Status of Indian banking Industry – Progress & Agenda ahead 2
Indian banks in foreign countries should be the key factors in consideration, while
entering into such agreements, as highlighted by 76 percent of banks
� Rise in the interest rates imminent say 64 percent survey respondents. Majority
expects increase by 0.5 percent.
� 88 percent of Public and private sector banks considered HRD related issues as one of

the biggest challenge in the process of consolidation.
� 83 percent respondent banks claim to have more than 85% level of technological
advancements in their banks with remaining banks stating it to be around 65-85%.
� All our respondents emphasized that customer retention is significantly important for
the profitability of the banks.
� More than 70 percent of banks felt the need of advanced security software’s and
stricter security policies to safeguard and ensure the security of customer information.
Some of the legal changes suggested are detailed in the survey.
� 53 percent of respondent banks considered 6 months transition period to shift from
MIFOR rupee benchmarks for interest rate derivatives to be inadequate
� Majority of banks felt that their Risk management framework for implementation of
BASEL II was well in place.
� 53 percent of our survey respondents intend to increase their retail portfolio by more
than 25% in the year 2005-06.
� Rising Indebtedness followed by lack of Technological advancements were identified
as biggest challenges that could affect the future growth of Retail banking.
� 80 percent of survey respondents did not agree with the notion that housing loan is
creating a bubble.
� Substantial progress made by banks in cleaning up the NPAs from their balance
sheets, was largely attributed to SARFAESI Act and increased provisioning on
Doubtful debts by majority of survey respondents.
� Absence of Secondary Market for the trading of security receipt issued by ARCs was
identified as one of major problem in Indian Model of NPA management.
� Separate NPA norms for the farm and the SME sector were recommended by large
number of respondents.
Survey on Status of Indian banking Industry – Progress & Agenda ahead 3
� 96 percent of all banks claim that the current growth of non-food credit is sustainable
for about 3-5 years.
� Detailed information on banks sectoral exposure of credit reveals that over two-thirds
of the credit flow has been on account of retail, housing and other priority sector
loans. Banks credit flow exposure to large Enterprises continues to remain buoyant
with recent indications that credit to agriculture and Micro credit has also picked up.

� 71 percent of our survey respondents did not consider SMEs as an avenue of forced

Company Profile


Vijaya Bank, a medium sized bank with presence across India was founded on 23rd
October 1931 by the late Shri A.B.Shetty and other enterprising farmers in Mangalore,
Karnataka in India.. The objective of the founders was essentially to promote banking
habits, thrift and entrepreneurship among the farming community of Dakshina Kannada
district in Karnataka State. The bank became a scheduled bank in 1958.Vijaya Bank
steadily grew into a large All India bank, with nine smaller banks merging with it during
the 1963-68. The credit for this merger as well as growth goes to late Shri M.Sunder Ram
Shetty, who was then the Chief Executive of the bank. The bank was nationalised on 15
April 1980.

Growth and Nationalisation

Vijaya Bank grew steadily by merging nine smaller banks into it between 1963-68. Shri
M.Sunder Ram Shetty, who was then the Chief Executive of the bank is largely credited
with these mergers. The bank was nationalised on 15 April 1980.


The bank has built a network of 1065 branches,45 Extension Counters and 352 ATMs as
at 03.01.2009, that span all 28 states and 4 union territories in the country.

Thrust on Information Technology

The Bank has chosen Finacle from Infosys as centralized banking solution. In line with
the prevailing trends, the bank has been giving greater thrust towards technological
upgradation of its operations. The bank has network of 1101 branches, 43 Extension
Counters and 364 ATMs.

All 1101 branches, 37 extension counters, 12 service branches are functioning on CBS
platform, and at 703 centers, covering 100 % of Bank's business.

Realising your constantly evolving and diverse needs, the bank has diversified too.
Entering several new areas such as credit card, merchant banking, hire purchase and
leasing, and electronic remittance services.

1031 - Branches /offices are under RTGS and 1030 - Branches / offices are under NEFT

Vijaya Bank is one among the few banks in the country to take up principal membership
of VISA International and MasterCard International.

The driving force behind Vijaya Bank's every initiative has been its 12107 strong
dedicated workforce.

Area of corporation

After obtaining the certificate of incorporation and certificate of commencement and

getting the draft of the memorandum of association and articles of association approved,
Vijaya bank Ltd., started functioning as per the provision of Indian companies act in a
small bungalow with a tiled roof (Mangalore tiles) on Kadri road in Mangalore.


Type : Public BSE: 532401

Founded : 1931 at Mangalore, India.

Headquarters : Bangalore, India

Key people : Albert Tauro, Chairman & Managing Director

Industry : Financial Commercial banks

Employees : 12,107

Website :

Organisational set up of bank as per 1931

Organisational set up of the bank as per 2009

Products & Services

Deposit Schemes

1. Savings Bank
2. V Platinum Savings Bank Account
3. Vijaya Saral Savings
4. Current Account
5. VStar Savings Scheme
6. Term Deposit

Loans & Advances

1. Retail Lending Schemes

2. Loans Against Securities
3. Non Fund Based Facilities
4. Advances to Agriculture, SSIs and Others
5. Government Sponsored Schemes
6. Special Schemes for Women

NRI Services

1. Deposits
2. Loans Remittances
3. FOREX Branches
4. FCNR(B) Branches
5. Helpline for NRIs

Remittance Collection and Facilities

1. FOREX Remittances
2. Inland Remittances
3. Electronic Remittance Services
4. Inward / Outward Collection Instruments

Credit Cards

1. Domestic Cards
2. Global cards
3. Debit cards


1. FOREX market Information
2. Card Rates
3. Treasury

Other Services

1. Merchant Banking
2. Vijaya Rakshak
3. V-Arogya Bima Policy
4. Credit Cards
5. Mutual Funds
6. Leasing
7. Hiring
8. Purchases

Competitors of Vijaya bank

Canara Bank.

Corporation Bank.

HDFC Bank Ltd.

ICICI Bank Ltd.

Indian Bank.

IndusInd Bank Ltd.

Karnataka Bank.

ING Vysya Bank Ltd.

Syndicate Bank.

State Bank of India.

Janatha corporative Bank.

Financial analysis of Vijaya bank

Ratio Analysis
31- 31-Mar-
As on Mar-09 08 31-Mar-07


Income (%) 88.23 87.97 91.13

Non Interest
Income (%) 11.77 12.04 8.87

Reported Net
Profit/Total Income
(%) 4.42 8.17 10.7

Net Interest
Income (%) 18.95 18.78 34.6
Net Interest Margin
(%) 3.17 2.62 4.42

Return Related
ROE (%)
cap+res)*100 8.34 14.69 17.47
ROA (%)
0.42 0.64 0.78

Leverage & Capital Measures

loans/deposits (%) 65.04 66.08 64.42

(%) 31.88 34.65 31.96

Liabilities/Networth 26.91 26.67 22.88

Growth (%)

Growth in Interest
Income 34.7 37.74 22.12

Growth in Interest
Expenses 34.48 74.65 30.78

Growth in Employee
cost 47.55 3.26 3.51

Growth in PAT -- 9.03 161.15

Growth in Deposits 13.73 27.52 35.71
Growth in
Borrowings -- 868.44 --

Per Share

Book Value Per

Share (Rs) 48.1 43.2 42.7
Earnings Per Share
(Rs)(PAT/no of
shares) 6.05 8.33 7.64
Dividend Per Share
paid/ no of equity
shares) -- -- --

Result of Financial analysis

PROFITABLITY- Though being a season of recession this year the company has ended
up with a net profit ratio of 4.2 which is nearly half to the last year’s ratio. It could be
considered fair till than but if see the balance sheet there has been a considerable increase
in the fixed assets to 10010.79 from 1861.77 which means that there should be increase
in the number of buildings and branches that should lead to more number of branches and
more number of accounts but besides this there are no signs of improvements in profit so
the profitability of Vijaya bank could be rated FAIR.

RETURNS-Share capital and reserves have increased in this year considerably this
shows a good sign of market value and after considering environmental conditions we
can also see that the profit earned after tax this year was lesser than of the previous year
so the returns can be rated as GOOD.

LEAVERAGE- The leverage ratio can be considered doing well as much down fall is
not observed and so it can be considered or rated VERY GOOD.

The bank’s market value is seem to be increasing and though the returns are less but the
expenses have also fallen to a large extent so Vijaya bank can be rated overall as VERY

Data analysis and findings

Analysis of the survey: The survey was done with an objective to find the marketing
and promotional activity of some of the randomly selected branches in D.K district of

Vijaya bank like any other national bank has various services like Vijaya tax saving
scheme, v-Rakshak, v-gen etc which is focusing on each and every age group and social
class of the society. Vijaya bank as was started by a group of agriculturists, as a bank of
agriculturists. It is still focusing on the priority sector.

The survey was guided throughout by Mr.K.Ganesh Acharya a bank manager in Vijaya
bank, who brought to my (surveyors) notice that bank, is following a social concerned
practice in the rural banking area.

The questionnaire prepared for the survey mainly was with a primary objective of finding
the important banking activity and business practices in the bank as a whole. Efforts were
made to understand the relationship between the main bank and its branches also the bank

and customers relationship, where Mr.Shetty Durgaprasad.D (surveyor) had visited some
of the customers personally and took their valuable inputs.

The questionnaire prepared was only given to the bank managers and the surveyor had
even referred the banks platinum jubilee book which was published in 2006 to understand
the banks history and progress till date.

The survey also was done on the basis of comparison of service between Vijaya bank and
State bank of India both Kinnigoli branch to find out the customer attending service
which was done by Mr.Shetty Durgaprasad.D (surveyor) who personally visited both the
bank and saw two extremely different kind of service.

Findings from the survey: The questionnaire prepared for the survey mainly was with a
primary objective of finding the important banking activity and business practices in the
bank as a whole. Efforts were made to understand the relationship between the main bank
and its branches also the bank and customers relationship, where Mr.Shetty
Durgaprasad.D (surveyor) had visited some of the customers personally and took their
valuable inputs.

It was very surprising to find that the bank does not believes in video advertisements and
opts moreover for pamphlets and billboards though the pamphlets are designed in a very
catchy manner in such a competitive era it is necessary to have a video advertisements.
The promotional activity is versatile where the bank is much focusing on service design
and corporate social responsibility. The bank also focuses on the customer relationship
where each and every customer is been personally attended and also sometimes
recognised. Throughout the analysis it was very clear that the bank was much focusing on
retaining the customers and making more customers by its warm and caring customer
attending service.

The design of pamphlets was very much clear, concise, and complete where the efforts to
give maximum knowledge regarding a particular service where made. Even it was found
that many of the people were migrating from other banks to Vijaya bank especially for
the competitive benefits given in some of the schemes like vcc, Jeevan Nidhi deposit
scheme.When asked with the managers they said that serving the people is main
objective. The bank has also taken step to educate and train the school children and the
rural people regarding banking through its extension.

The managers put forth their views that proper and complete training should be given to
the senior work force regarding computerized banking.It was even clear that the
employee satisfaction and Job satisfaction was present and the bank was making its
employee as a potetional advertisers of their organisation by their total service motive.

The Bank is practicing its tag line very well which is “A friend you can Bank upon”

Surveyors input: The major findings were that the bank is lagging behind in video
advertisements and it has a tough competition from the corporation and syndicate bank.
The bank is much more customer service oriented and the workforce present is much
impressive. The product profile of the bank is also impressive where it is covering all the
sections and places in the society. It is also the second bank in India to start with the
mobile banking system, which has a good customer response. The NPA ratio was fair in
all the branches as consulted in the research and its increasing number of branches across
India was showing the progress of the bank.

As a management student and also the customer of the bank the main suggestion would
be that the bank should go for an effective video advertisement as people would come to
know more about the bank. The bank should also concentrate in some of institutional tie
ups to gear the business.

The workforce present is very much effective but optimum utilization was lacking cause
training in the use of computers was very less among the senior level officers.

The promotional activity has to be more stressed upon cause of the tough competition
from other banks. The major problem in this particular bank is that some of the very

impressive and potetional offers and schemes like the V.C.C, V-gen and tax saving
scheme is being unnoticed in the market even the banks prime customer lack knowledge
about such services present in the bank so the bank should much concentrate in making
the public realize the efficiency and potetional of such products through various
promotional activity.


As a leading bank in the banking industry Vijaya bank should not neglect the promotional
activities at all in its activity towards making business as promotional activity is
necessary in any business so that the society and customer would know about the benefits
of the service and that are influenced to buy.

Financial institutions should also pay attention to political environment and labour
conditions of the area where if any potetional project is to be located. Strikes, Lockouts,
Industrial Peace and Communal Harmony in the area play a decisive role in examining
success or failure of the project. Market and environmental analysis is much more of
importance before launching any of the service so Vijaya bank should also foresee the
exact market segment for each of its product cause many of the schemes are only suitable
to a particular location and class of people.

Also we should consider the slowdown in the economy due to the recession as banks
suffered the most during this time but Vijaya bank was able to maintain the business
throughout. The bank is also having a good workforce and also is recruiting fresh
employees which mean it is creating opportunities for growth in the income per person in

Vijaya bank can also be look upon as a bank which is functioning as a social business
entity cause of its interest taken in educating people and students in banking with the help
of its extension.


31-Mar-09(12) 31-Mar-08(12) 31-Mar-07(12)

Profit/Loss A/C Rs. mn %OI Rs. mn %OI Rs. mn %OI

Interest Income
Earned 52378.25 88.23 39834.15 90.11 28231.12 91.13
Exchange and
Income 1288.03 2.17 838.19 1.9 664.66 2.15

Lease Income 0 0 0 0 0 0
Income 0 0 0 0 0 0
s Income 5700.07 9.6 3533.35 7.99 2083.23 6.72

Other Income 6988.1 11.77 4371.54 9.89 2747.89 8.87

Total Income
(OI) 59366.36 100 44205.68 100 30979.01 100

Expenditure 41130.24 69.28 30584.18 69.19 17511.62 56.53
Expenditure 5974.69 10.06 4049.16 9.16 3921.39 12.66

Depreciation 369.81 0.62 307.99 0.7 401.31 1.3

Expenditure 2902.49 4.89 2655.59 6.01 2184.48 7.05

Provision and
Contingencies 3574.12 6.02 3832.88 8.67 3482.68 11.24
Expenditure 53951.36 90.88 41429.8 93.72 27501.47 88.77

Pretax Income 5415 9.12 2775.88 6.28 3477.54 11.23

Tax 2790.2 4.7 -836.9 -1.89 164.1 0.53

Extra Ordinary
and Prior Period
Items Net 0 0 0 0 0 0
Net Profit 2624.8 4.42 3612.78 8.17 3313.45 10.7
Adjusted Net
Profit 2624.8 4.42 3612.78 8.17 3313.45 10.7
Dividend -
Preference 0.96 0 0 0 0 0
Dividend -
Equity 507.19 0.85 1014.39 2.29 1001.51 3.23

Balance Sheet
31-Mar-09 %BT 31-Mar-08 %BT 31-Mar-07 %BT
Capital 2000 0.32 2000 0.36 4335.18 1.02
Capital 5000 0.8 0 0 0 0
Capital 7000 1.13 2000 0.36 4335.18 1.02
and Surplus 22157.77 3.57 20255.32 3.62 14631.59 3.45
Deposits 545354.25 87.75 479520.13 85.7 376044.99 88.78
Borrowings 6192.42 1 19188.72 3.43 1981.4 0.47
Liabilities 40786.41 6.56 38543.74 6.89 26581.76 6.28
Capital and
(BT) 621490.84 98.14 559507.92 100.49 423574.92 100
Assets 10010.79 1.58 0.46 0 1861.77 0.44
Investments 173877.03 27.46 166173.2 29.85 120184.05 28.37
Advances 354681.11 56.01 316892.16 56.92 242235.52 57.19
Cash &
Money at
Call 81079.95 12.8 60973.63 10.95 50701.23 11.97
Assets 13613.62 2.15 12725.89 2.29 8592.35 2.03
Properties 633262.5 100 556765.34 100 423574.92 100
and Assets



1. Which sector does your branch gives importance?

a. Priority sector b. non-priority sector.

2 what kind of loan is more availed by the public from the bank?

3. What kind of promotional activity is undertaken by the branch and the bank?

4. What kind of delegation of authority is given to you as branch manager?

5. Did the branch go for any tie ups till date? Specify?

6. What kind of workforce is present in the branch?

7. Is there any promotional activity taken by the branch recently?

8. How often do people migrate from other bank to your banking service?

9. What kind of competition is the branch facing?

10. Which scheme of the bank is doing expressively well? Why?

11. How often the regional or the main branch official would be visiting the branch?